“The market is finally reflecting changing fundamentals,” Kona Haque, head of research at commodity traders ED&F Man, told the Financial Times.
Speculators are turning bullish in light of the tightening fundamentals.
“Short-term oriented market participants are also betting on a price-driving tightening of sugar supply,” Commerzbank told the Financial Times, adding that hedge funds and other financial investors switched to net longs for the first time in over a year.
iPath Dow Jones-UBS Sugar Total Return Sub-Index ETN
For more information on the sugar market, visit our sugar category.
Max Chen contributed to this article.